The document discusses the food and beverage industry in Jeddah, Saudi Arabia. It provides statistics on Jeddah's population growth, number of visitors, and GDP per capita. It then analyzes the restaurant market segmentation based on average check price and discusses opportunities and challenges in the market, including high real estate prices, lack of skilled labor, and enforcing workforce nationalization. Overall, it finds that Jeddah's young and affluent population combined with over 5 million visitors annually makes it an attractive, largely untapped market for food and beverage businesses.
The UAE restaurant market is projected to grow substantially over the next four years, with the market size increasing 30% to USD 780 million by 2018. American fast food brands currently dominate the market, comprising 47% of food and beverage outlets in Dubai malls. As profits decline in domestic markets, major American restaurant chains plan to open over 250 locations across the Middle East in the next decade. The growing tourism industry in the UAE, expected to more than double the number of hotel rooms by 2016, will further drive demand for new restaurants. A consumer survey found that customers are willing to try new cuisines and value food quality and service over price when choosing restaurants.
The UAE restaurant market is projected to grow 30% by 2018 to $780 million, dominated by American fast food brands which make up 47% of Dubai mall food offerings. As profits slow domestically, US chains plan to open 250 outlets in the Middle East over the next decade. A survey found UAE residents are willing to experiment with new cuisines and restaurants, and quality, service, and type of food are most important when choosing where to dine out.
- Qatar has experienced rapid growth in its hospitality and tourism sector over the last 5 years, with visitor arrivals growing 11.5% annually and 20 new hotels opening in 2015 alone.
- Investment opportunities exist in developing new hotel room inventory, especially 3-4 star properties, as well as experiential hotels, resorts, eco-lodges, and boutique hotels. Opportunities also exist in tourism services, leisure, culture, and MICE sectors.
- Qatar offers advantages for tourism investment including a fast growing market, political stability, and over $200B already invested in infrastructure to support tourism like the new airport and metro system. The government is working to facilitate new investments in the sector.
Sopexa conference : Saudi arabia - Awakening the sleeping giantSOPEXA_GROUPE
This document provides an overview of the food and drink market in Saudi Arabia. It discusses the large size but complexity of the Saudi market, with lengthy import processes and a fragmented trade landscape. The food and drink market is valued at $21 billion annually and growing 10% per year, with 80% of products being imports. The document outlines the major retail and foodservice channels in Saudi Arabia and characteristics of Saudi consumers, who are voracious foodies seeking new culinary experiences. It provides recommendations on how to succeed in the Saudi Arabian market with the help of specialized agencies.
- The document provides an analysis of Dubai's demographic, economic, political, legal, and cultural environment as context for a wine company considering entering the Dubai market.
- Key points include Dubai's population growth rate of 16% and diverse cultural makeup, relatively low inflation rates since the 2008 crisis, and regulations around alcohol distribution and advertising given Islamic influences.
- The tourism and hotel industry in Dubai is sizable and growing, presenting opportunities for the wine company to target tourists through distribution to hotels. However, cultural sensitivities require an indirect distribution approach working with a local distributor.
The document summarizes the luxury retail industry in the GCC (Gulf Cooperation Council) region. It discusses key growth drivers like increasing disposable income and tourism. It also outlines challenges like competition and staffing issues. Individual country profiles are provided that highlight population trends, GDP per capita, and other factors driving retail growth in countries like the UAE, Saudi Arabia, Kuwait, Qatar, and Bahrain. The conclusion states that the Middle East luxury retail industry is among the fastest growing sectors globally and will see continued expansion from international luxury brands.
The strategic marketing plan outlines Tourism Calgary's goals to position Calgary as a leading tourism destination through four strategic priorities: 1) Expanding the refreshed Calgary brand; 2) Enhancing customer relevancy by marketing experiences; 3) Driving weekend visitation and hotel stays with the leisure market; and 4) Maximizing ROI by focusing investment on key regional and long-haul markets. Key tactics include expanding the Calgary brand through new imagery and video, identifying signature travel experiences, driving visitation through integrated marketing campaigns, and increasing research investment to improve marketing effectiveness.
- The document discusses an investment opportunity to develop Vertex Towers, a residential complex in Dubai with four towers that will house over 1,000 hotel staff.
- It will be located in the International Media Production Zone and consist of studio, one-bedroom, and two-bedroom apartments along with recreational amenities.
- Three cash flow scenarios are presented: developing all four towers for rental income; developing all four towers and selling two in the first year; or developing and selling all four towers.
The UAE restaurant market is projected to grow substantially over the next four years, with the market size increasing 30% to USD 780 million by 2018. American fast food brands currently dominate the market, comprising 47% of food and beverage outlets in Dubai malls. As profits decline in domestic markets, major American restaurant chains plan to open over 250 locations across the Middle East in the next decade. The growing tourism industry in the UAE, expected to more than double the number of hotel rooms by 2016, will further drive demand for new restaurants. A consumer survey found that customers are willing to try new cuisines and value food quality and service over price when choosing restaurants.
The UAE restaurant market is projected to grow 30% by 2018 to $780 million, dominated by American fast food brands which make up 47% of Dubai mall food offerings. As profits slow domestically, US chains plan to open 250 outlets in the Middle East over the next decade. A survey found UAE residents are willing to experiment with new cuisines and restaurants, and quality, service, and type of food are most important when choosing where to dine out.
- Qatar has experienced rapid growth in its hospitality and tourism sector over the last 5 years, with visitor arrivals growing 11.5% annually and 20 new hotels opening in 2015 alone.
- Investment opportunities exist in developing new hotel room inventory, especially 3-4 star properties, as well as experiential hotels, resorts, eco-lodges, and boutique hotels. Opportunities also exist in tourism services, leisure, culture, and MICE sectors.
- Qatar offers advantages for tourism investment including a fast growing market, political stability, and over $200B already invested in infrastructure to support tourism like the new airport and metro system. The government is working to facilitate new investments in the sector.
Sopexa conference : Saudi arabia - Awakening the sleeping giantSOPEXA_GROUPE
This document provides an overview of the food and drink market in Saudi Arabia. It discusses the large size but complexity of the Saudi market, with lengthy import processes and a fragmented trade landscape. The food and drink market is valued at $21 billion annually and growing 10% per year, with 80% of products being imports. The document outlines the major retail and foodservice channels in Saudi Arabia and characteristics of Saudi consumers, who are voracious foodies seeking new culinary experiences. It provides recommendations on how to succeed in the Saudi Arabian market with the help of specialized agencies.
- The document provides an analysis of Dubai's demographic, economic, political, legal, and cultural environment as context for a wine company considering entering the Dubai market.
- Key points include Dubai's population growth rate of 16% and diverse cultural makeup, relatively low inflation rates since the 2008 crisis, and regulations around alcohol distribution and advertising given Islamic influences.
- The tourism and hotel industry in Dubai is sizable and growing, presenting opportunities for the wine company to target tourists through distribution to hotels. However, cultural sensitivities require an indirect distribution approach working with a local distributor.
The document summarizes the luxury retail industry in the GCC (Gulf Cooperation Council) region. It discusses key growth drivers like increasing disposable income and tourism. It also outlines challenges like competition and staffing issues. Individual country profiles are provided that highlight population trends, GDP per capita, and other factors driving retail growth in countries like the UAE, Saudi Arabia, Kuwait, Qatar, and Bahrain. The conclusion states that the Middle East luxury retail industry is among the fastest growing sectors globally and will see continued expansion from international luxury brands.
The strategic marketing plan outlines Tourism Calgary's goals to position Calgary as a leading tourism destination through four strategic priorities: 1) Expanding the refreshed Calgary brand; 2) Enhancing customer relevancy by marketing experiences; 3) Driving weekend visitation and hotel stays with the leisure market; and 4) Maximizing ROI by focusing investment on key regional and long-haul markets. Key tactics include expanding the Calgary brand through new imagery and video, identifying signature travel experiences, driving visitation through integrated marketing campaigns, and increasing research investment to improve marketing effectiveness.
- The document discusses an investment opportunity to develop Vertex Towers, a residential complex in Dubai with four towers that will house over 1,000 hotel staff.
- It will be located in the International Media Production Zone and consist of studio, one-bedroom, and two-bedroom apartments along with recreational amenities.
- Three cash flow scenarios are presented: developing all four towers for rental income; developing all four towers and selling two in the first year; or developing and selling all four towers.
As a representative of CONLON/Christie’s International Real Estate, Luxury Defined 2016 is an incredible document that offers insight into the luxury residential property market unlike any other resources. This year’s Luxury Defined report looks beyond the headlines and offers fresh perspectives on how macroeconomic factors are impacting prices, inventory, and sales in the prime property market.
The report examines data from affiliates in more than 100 prestige real estate markets worldwide and sets global benchmarks by ranking the top 10 cities for luxury property (Luxury Index) as well as the top 10 performing markets (Luxury Thermometer). London tops this year’s list as the world’s most “luxurious” real estate market, and Auckland supplants Toronto as the “hottest” luxury residential real estate market globally.
The document discusses clusters and their importance for economic competitiveness. It provides examples of successful clusters in industries like fashion, fast food, and tourism. Clusters arise because being located near similar companies improves productivity through access to specialized suppliers, skills, information, and infrastructure. For developing economies, well-functioning clusters are important for advancing to more advanced economic stages by facilitating innovation and integration of related industries.
This document provides a marketing plan for Waffle Empire, a proposed food cart business located within Downtown Disney Shanghai. It begins with an executive summary describing the mission and product offering of waffle sticks and dipping sauces. Market research on Shanghai, Disneyland, and waffle trends in China is presented. The plan proposes strategies to position Waffle Empire as the most desirable food option. Financial projections include a sales forecast predicting profitability and funds available for donation. Challenges addressed are a new cultural market and restrictions within Disney. The recommendation is that Waffle Empire can succeed with the right marketing tactics.
The document describes a proposed luxury condo hotel project called Regency Suites located in Orlando, Florida near major tourist attractions. It highlights the strong market demand for higher-end extended stay accommodations in the area. The project aims to take advantage of this deficit by combining luxury living spaces with hotel amenities. It is expected to generate significant job creation and economic activity for the region.
The document provides a summary of a marketing strategy research project for the Lexington Grill restaurant located within the Waldorf Astoria Ras Al Khaimah hotel in the United Arab Emirates. It begins with an introduction to the hotel and restaurant. It then discusses problems the restaurant is facing such as low sales outside of high season and lack of a proper marketing strategy. The objective of the research is to create an improved marketing strategy to increase sales and profits. Steps to be taken include analyzing the market environment, competitors, and developing marketing mix tactics.
Closing a single underperforming restaurant requires careful communication to avoid damaging the overall brand. It is important to notify customers and staff of the closure, thank loyal customers, and direct customers to other locations. Closures can negatively impact perceptions of the brand and future investments, so clear explanations are needed to show it was a strategic decision. Proper planning is also needed to address labor obligations and avoid issues with leased properties.
This document summarizes a research project that aims to define biomarkers for personalized cancer treatment using drug sensitivity data. The project will analyze existing drug sensitivity and molecular profiling data from cell lines and patients to identify biomarkers associated with drug response. Predictive models will be developed and tested to determine the most effective drugs for individual patients based on their tumor biomarkers. The goal is to improve cancer treatment outcomes by selecting treatments that have a higher likelihood of curing individual patients.
The document summarizes key findings from a study on the restaurant sector in Italy, with a focus on Milan:
1) Restaurants and hotels are most concentrated in Milan (5%), Lombardy (9.4%), Lazio (10.8%), and other major regions;
2) The economic crisis led to a 15% drop in restaurant sector turnover in 2014, though employment increased slightly;
3) In Milan, Italian and pizza concepts dominate the market with over 2,600 outlets, accounting for 47% of the total units.
The restaurant industry in Paris is becoming more competitive. In 2013, 1,337 new restaurants opened but 884 restaurants closed, resulting in a net loss of 884 restaurants. The role of a restaurateur is increasingly complex as they must conduct thorough research and develop viable business plans to succeed. Additionally, the average lifespan of restaurants has decreased from 7 years to only 2 years. Consumers are more discerning, using the internet to research options and freely share their opinions online, forcing restaurants to continually improve their offerings.
This document summarizes research into discovering novel biomarkers for breast cancer through analyzing copy number alterations. The author identifies 30 genes across 4 amplified regions in breast cancer cell lines that correlate with mRNA expression. Validation in two public datasets finds 11 genes associated with patient survival and several showing copy number and expression correlations. Particular interest is in SQLE which is affected in breast tumors and associated with improved survival in ER-positive and luminal A subtypes. The author proposes further exploring the role of cholesterol biosynthesis and other amplified regions in ER-positive breast cancer through systems biology approaches.
This document summarizes a research project that aims to define biomarkers for personalized cancer treatment using drug sensitivity data. The project will analyze existing drug sensitivity and molecular profiling data from cell lines and patients to identify biomarkers associated with drug response. Predictive models will be developed and tested to determine the most effective drugs for individual patients based on their tumor biomarkers. The goal is to improve cancer treatment outcomes by selecting treatments that are most likely to cure individual patients based on their personalized biomarker profiles.
The document discusses English work. It focuses on improving English language skills through practice and exposure. Regular study and application of new vocabulary, grammar rules, and sentence structures can enhance one's English abilities over time.
This document proposes a plugin for the PathVisio software that provides metabolite information when a metabolite is selected. The plugin would retrieve molecular properties, identifiers, NMR and MS data from databases like HMDB. It would display properties, predicted and experimental NMR chemical shifts, and MS and NMR spectra from HMDB. The plugin relies on a metabolite database and chemical identifier resolver to function. It is meant to provide essential metabolite data and spectra in PathVisio in an easy to access way.
Manama, the capital of Bahrain, has a thriving nightlife scene centered around hotels and clubs due to its legal alcohol. It attracts many regional visitors on weekends. The city has a cosmopolitan atmosphere where men and women freely intermingle and enjoy eclectic music and drinks at popular clubs and bars. The food and beverage industry in Manama has greatly expanded with over 300 establishments offering local and international cuisines. Nightlife remains an important part of Manama's culture and tourism sector.
This document provides information about the Saudi food, hotel & hospitality arabia exhibition taking place from April 13-16, 2014 in Jeddah, Saudi Arabia. The summary is as follows:
(1) The exhibition is being held under the patronage of the Saudi Ministry of Agriculture at the Jeddah Centre for Forums & Events and aims to promote the food, beverages, catering, hotel equipment and hospitality industries in Saudi Arabia.
(2) Saudi Arabia has a rapidly growing population and economy and represents the largest food and beverage market in the Gulf region. The exhibition provides opportunities for international suppliers to meet with Saudi manufacturers, agents, and distributors.
(3)
The document provides an organizational profile of Kobe Sizzlers, an Indian restaurant chain known for its sizzler dishes - combinations of meat, fish or vegetables cooked on a hot plate at the table. It details Kobe Sizzlers' history of over 30 years in the industry, menu offerings including popular items like lamb shashlik and chicken sausage sizzler, and mission to provide a memorable dining experience through consistent quality cuisine. The profile establishes Kobe Sizzlers as a leader in the Indian casual dining sector, operating multiple locations across major cities and looking to expand internationally.
As a representative of CONLON/Christie’s International Real Estate, Luxury Defined 2016 is an incredible document that offers insight into the luxury residential property market unlike any other resources. This year’s Luxury Defined report looks beyond the headlines and offers fresh perspectives on how macroeconomic factors are impacting prices, inventory, and sales in the prime property market.
The report examines data from affiliates in more than 100 prestige real estate markets worldwide and sets global benchmarks by ranking the top 10 cities for luxury property (Luxury Index) as well as the top 10 performing markets (Luxury Thermometer). London tops this year’s list as the world’s most “luxurious” real estate market, and Auckland supplants Toronto as the “hottest” luxury residential real estate market globally.
The document discusses clusters and their importance for economic competitiveness. It provides examples of successful clusters in industries like fashion, fast food, and tourism. Clusters arise because being located near similar companies improves productivity through access to specialized suppliers, skills, information, and infrastructure. For developing economies, well-functioning clusters are important for advancing to more advanced economic stages by facilitating innovation and integration of related industries.
This document provides a marketing plan for Waffle Empire, a proposed food cart business located within Downtown Disney Shanghai. It begins with an executive summary describing the mission and product offering of waffle sticks and dipping sauces. Market research on Shanghai, Disneyland, and waffle trends in China is presented. The plan proposes strategies to position Waffle Empire as the most desirable food option. Financial projections include a sales forecast predicting profitability and funds available for donation. Challenges addressed are a new cultural market and restrictions within Disney. The recommendation is that Waffle Empire can succeed with the right marketing tactics.
The document describes a proposed luxury condo hotel project called Regency Suites located in Orlando, Florida near major tourist attractions. It highlights the strong market demand for higher-end extended stay accommodations in the area. The project aims to take advantage of this deficit by combining luxury living spaces with hotel amenities. It is expected to generate significant job creation and economic activity for the region.
The document provides a summary of a marketing strategy research project for the Lexington Grill restaurant located within the Waldorf Astoria Ras Al Khaimah hotel in the United Arab Emirates. It begins with an introduction to the hotel and restaurant. It then discusses problems the restaurant is facing such as low sales outside of high season and lack of a proper marketing strategy. The objective of the research is to create an improved marketing strategy to increase sales and profits. Steps to be taken include analyzing the market environment, competitors, and developing marketing mix tactics.
Closing a single underperforming restaurant requires careful communication to avoid damaging the overall brand. It is important to notify customers and staff of the closure, thank loyal customers, and direct customers to other locations. Closures can negatively impact perceptions of the brand and future investments, so clear explanations are needed to show it was a strategic decision. Proper planning is also needed to address labor obligations and avoid issues with leased properties.
This document summarizes a research project that aims to define biomarkers for personalized cancer treatment using drug sensitivity data. The project will analyze existing drug sensitivity and molecular profiling data from cell lines and patients to identify biomarkers associated with drug response. Predictive models will be developed and tested to determine the most effective drugs for individual patients based on their tumor biomarkers. The goal is to improve cancer treatment outcomes by selecting treatments that have a higher likelihood of curing individual patients.
The document summarizes key findings from a study on the restaurant sector in Italy, with a focus on Milan:
1) Restaurants and hotels are most concentrated in Milan (5%), Lombardy (9.4%), Lazio (10.8%), and other major regions;
2) The economic crisis led to a 15% drop in restaurant sector turnover in 2014, though employment increased slightly;
3) In Milan, Italian and pizza concepts dominate the market with over 2,600 outlets, accounting for 47% of the total units.
The restaurant industry in Paris is becoming more competitive. In 2013, 1,337 new restaurants opened but 884 restaurants closed, resulting in a net loss of 884 restaurants. The role of a restaurateur is increasingly complex as they must conduct thorough research and develop viable business plans to succeed. Additionally, the average lifespan of restaurants has decreased from 7 years to only 2 years. Consumers are more discerning, using the internet to research options and freely share their opinions online, forcing restaurants to continually improve their offerings.
This document summarizes research into discovering novel biomarkers for breast cancer through analyzing copy number alterations. The author identifies 30 genes across 4 amplified regions in breast cancer cell lines that correlate with mRNA expression. Validation in two public datasets finds 11 genes associated with patient survival and several showing copy number and expression correlations. Particular interest is in SQLE which is affected in breast tumors and associated with improved survival in ER-positive and luminal A subtypes. The author proposes further exploring the role of cholesterol biosynthesis and other amplified regions in ER-positive breast cancer through systems biology approaches.
This document summarizes a research project that aims to define biomarkers for personalized cancer treatment using drug sensitivity data. The project will analyze existing drug sensitivity and molecular profiling data from cell lines and patients to identify biomarkers associated with drug response. Predictive models will be developed and tested to determine the most effective drugs for individual patients based on their tumor biomarkers. The goal is to improve cancer treatment outcomes by selecting treatments that are most likely to cure individual patients based on their personalized biomarker profiles.
The document discusses English work. It focuses on improving English language skills through practice and exposure. Regular study and application of new vocabulary, grammar rules, and sentence structures can enhance one's English abilities over time.
This document proposes a plugin for the PathVisio software that provides metabolite information when a metabolite is selected. The plugin would retrieve molecular properties, identifiers, NMR and MS data from databases like HMDB. It would display properties, predicted and experimental NMR chemical shifts, and MS and NMR spectra from HMDB. The plugin relies on a metabolite database and chemical identifier resolver to function. It is meant to provide essential metabolite data and spectra in PathVisio in an easy to access way.
Manama, the capital of Bahrain, has a thriving nightlife scene centered around hotels and clubs due to its legal alcohol. It attracts many regional visitors on weekends. The city has a cosmopolitan atmosphere where men and women freely intermingle and enjoy eclectic music and drinks at popular clubs and bars. The food and beverage industry in Manama has greatly expanded with over 300 establishments offering local and international cuisines. Nightlife remains an important part of Manama's culture and tourism sector.
This document provides information about the Saudi food, hotel & hospitality arabia exhibition taking place from April 13-16, 2014 in Jeddah, Saudi Arabia. The summary is as follows:
(1) The exhibition is being held under the patronage of the Saudi Ministry of Agriculture at the Jeddah Centre for Forums & Events and aims to promote the food, beverages, catering, hotel equipment and hospitality industries in Saudi Arabia.
(2) Saudi Arabia has a rapidly growing population and economy and represents the largest food and beverage market in the Gulf region. The exhibition provides opportunities for international suppliers to meet with Saudi manufacturers, agents, and distributors.
(3)
The document provides an organizational profile of Kobe Sizzlers, an Indian restaurant chain known for its sizzler dishes - combinations of meat, fish or vegetables cooked on a hot plate at the table. It details Kobe Sizzlers' history of over 30 years in the industry, menu offerings including popular items like lamb shashlik and chicken sausage sizzler, and mission to provide a memorable dining experience through consistent quality cuisine. The profile establishes Kobe Sizzlers as a leader in the Indian casual dining sector, operating multiple locations across major cities and looking to expand internationally.
Insights: Gulfood Manufacturing 2014 PreviewSabin Muzaffar
Gulfood Manufacturing is a new trade show launching in Dubai to spur growth in the food and beverage processing industries in the Middle East, Africa, and Southeast Asia regions. The inaugural show in November 2014 is expected to gather over 10,000 trade visitors and 1,500 delegates. It will provide a platform for the over 1,000 international suppliers in the industry to showcase the latest ingredients, processing machinery, packaging equipment, and logistics solutions to the regional and global food manufacturing industry. The show aims to highlight opportunities for the region to become a leading international manufacturing and processing hub to meet the growing demand for food imports in the region, which are forecast to reach $53.1 billion by 2020.
The Middle East: The Land of Restaurant OpportunityAaron Allen
With the discovery of oil in the Gulf Coast and surrounding areas, the Middle East has become a prosperous region. It boasts some of the highest concentrations of millionaires in the world. There is plenty of wealth to go around, and with that wealth, a penchant to indulge in luxurious hotels and restaurants.
This document summarizes the PBCL (pubs, bars, clubs and lounges) market in India. It notes that the market is valued at approximately $1.64 billion currently with over 5,300 units across urban India. The market is expected to reach $2.68 billion by 2018 growing at a CAGR of 10% annually. Currently, standalone brands make up the majority of the market but chain brands are expected to increase their market share slightly over time. Licensing requirements and regulations present challenges for operators in this market. Rising incomes and lifestyle changes, especially among youth, are fueling the growth of the alcoholic beverages sector in India.
TY-BMS SEM 5.............! YUM! BRANDS INC. Gaurav Gupta
The hospitality industry in India is growing rapidly due to increasing tourism and a rising middle class with more disposable income and leisure time. Hotels and restaurants are a key part of the hospitality sector and are intertwined with tourism, providing lodging and food which are essential for both foreign and domestic travelers. The sector is also linked to other industries and provides numerous jobs across various skill levels. Competition in the industry is high as mobility has increased, leading some entrepreneurs to start mobile food vans as an innovative business model in this growing and changing industry.
Saudi coffee market valued at SR15bFinancial Services Monitor Wo.docxkenjordan97598
The Saudi coffee market is valued at SR15 billion annually. Coffee consumption has risen sharply in Saudi Arabia, with 18,000 tons imported per year worth SR203 million. The growth of the coffee processing industry has helped boost the large Saudi coffee shop market. Bonnon Coffee is a major local Saudi brand that competes with global coffee chains, with plans to continue strategic growth through new outlets and focus on its core coffee shop business.
Wendy's is considering expanding into Saudi Arabia and Kuwait. Saudi Arabia has a larger population and GDP than Kuwait. A PEST analysis finds Saudi Arabia has a stable political environment and growing economy, while Kuwait also has a strong economy but drastic social classes. A SWOT analysis identifies Wendy's strengths as its brand recognition and supply chain, but also threats of competition and health concerns. Franchise ownership rules differ, allowing slightly more foreign ownership in Kuwait. Overall Saudi Arabia is judged to be a better market for Wendy's expansion.
The United Arab Emirates is positioning itself as the global center of the Halal food industry by taking advantage of its strategic location and leadership role in defining international Halal standards and processes. Dubai aims to establish itself as a leader through the development of unified standards while growing demand for Halal products beyond traditional markets. Key factors driving this include the Halal food market's expected value of $2.5 trillion by 2019, Dubai's infrastructure and geographic location, and initiatives to attract manufacturers through a Halal cluster and testing center. However, challenges remain regarding the lack of unified standards currently and expanding Halal's market beyond ethnic products.
This document provides a business plan for The Canal Bar, a proposed restaurant and bar in Las Colinas, Texas. The executive summary outlines the concept of providing quality food, drinks, and live local entertainment in a unique canal-side location. The target market is 21-45 year old professionals in Irving. The plan includes sections on vision/mission, industry analysis, products/services, marketing strategy, management, finances, and investment proposal. Key points are establishing The Canal Bar as a community gathering place and nightlife destination in Las Colinas through its atmosphere, entertainment, and focus on customer service.
The following terms are covered in the Sample reading material.
Indian Food Retail Scenario
Fast Food Chains in India
Challenges faced
Top food joints and restaurants in India
Get more details on the below link.
http://www.vskills.in/certification/Hospitality/Certified-Restaurant-Manager
This document provides an overview of the halal industry, focusing on five key sectors: halal food, halal travel, halal fashion, halal pharmaceuticals, and halal media. It notes that halal food has more companies than any other sector of the Islamic economy, with Muslim spending on food and beverages forecast to reach $1.9 trillion by 2023. It also discusses opportunities in halal travel as countries like Saudi Arabia and Oman aim to expand religious and cultural tourism. The document briefly outlines recent developments and opportunities in halal fashion, pharmaceuticals, and media.
Saudi Arabian Foodservice: The Future of Foodservice in Saudi Arabia to 2016ReportsnReports
This document provides an overview and market analysis of the foodservice industry in Saudi Arabia. Key points include:
- The foodservice industry in Saudi Arabia has been growing steadily despite global economic vulnerabilities, driven by factors like economic growth, increasing disposable income, and changing demographics.
- The report analyzes the operating environment, market size and forecasts, dynamics and structure of both the profit and cost sectors, regulatory environment, and competitive landscape of major companies.
- It provides detailed insights into various foodservice channels in the profit and cost sectors, including restaurants, accommodation, leisure, retail, workplace, education, healthcare, and more.
Before you start writing your food cafe business plan, spend as much time as you can to reading through some samples of food and restaurant business plans. Not only will that give you a good idea of what it is you’re aiming for, but it will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their future plans.
We have created a sample food cafe business plan example for you to get a good idea about how a perfect food cafe business plan should look like and what details you should include in your business plan.
Source: https://upmetrics.co/template/food-cafe-business-plan-example
Colombia is a major global supplier of agro-industrial products due to its variety of climates allowing year-round production, strategic geographic location with access to both the Pacific and Atlantic, and high quality products meeting international standards and consumer trends. Some of Colombia's main exports include fresh and processed fruits and vegetables, poultry, shrimp, confectionery goods, flour products, and snacks. Certifications help Colombian exporters meet demands of international markets.
Saudi Aramco IPO - A Reality of Mythical ProportionsAranca
Aranca's special report on Saudi Aramco IPO highlights its impact on industry, global investment banks and discusses the political and economic ramifications a large IPO may have. Download the report here!
Saudi aramco ipo - a reality of mythical proportionsAranca
Aranca's special report on Saudi Aramco IPO highlights its impact on industry, global investment banks and discusses the political and economic ramifications a large IPO may have. Download the report here!
Greetings,
Attached FYI ( NewBase Special 17 February 2015 ) , with
energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
• S.Arabia & UAE control 74 percent of GCC’s private wealth
• Egypt, Cyprus Sign Oil & Gas Related MoU
• Pipeline of opportunities: ‘TAPI will bring Kabul, Islamabad, Delhi closer’
• Norway:BG Group drills two dry wells near the Knarr field in N.Sea
• Norway Lundin Petroleum spuds exploration well on Gemini prospect
• France:Europa Oil & Gas farms out Tarbes Permit to Vermilion
• Angola: Oil majors focus on Angola
• U.S. 2014 LNG imports nosedive in 2014
• Oil Rises as OPEC Producers Signal Optimism Over Market Recovery
• Bahrain: MEOS-15 Conference to start March 11th
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
Umex Capital Markets Group aims to support small and medium enterprises in the halal industry through Islamic microfinancing. The halal industry is a rapidly growing $2.1 trillion market serving the 1.6 billion Muslim population. However, it is currently fragmented with many small businesses that lack access to financing. Umex plans to enter the Islamic microfinance sector to provide financing to small and medium enterprises in halal sectors like agriculture, food, and clothing. This will help support economic growth and provide opportunities for businesses in the industry to expand.
The GCC food retail sector is fragmented with many small, local retailers. However, the sector is gradually consolidating with international and domestic retailers competing for market share. Large hypermarkets are expected to dominate the future landscape, with further consolidation seen as imminent. The top retailers currently hold 13% of the market in Saudi Arabia and 36% in the UAE. Regional players have engaged in M&A activity to maintain market share against international competitors. Family businesses in the fragmented GCC market face challenges from global players and may need to collaborate or restructure to remain competitive.
1. rettelswen
Hospitality Management & Consultancy
Jeddah’s Municipality has been working on a development strategy
for the city to enhance its image as the pilgrimage and business
gateway of the kingdom with additional focus on inbound tourism with
international origin since around 90% of the current tourism is
domestic.
Development strategies benefits all business sectors directly and
indirectly while the Global Food &Beverage revenues were well over
$22 trillion in 2013 representing nearly 30 per cent of the world’s
economy. Few industries are rifer with opportunity than the food and
beverage sector, and nowhere this is more evident than in Jeddah
where a thriving economy and affluent population combine to make it
one of the most attractive untapped markets in the world. With an
current population of 5.1 million with an increase of 5 percentage
point YOY and more than 5 million visitors every year scoring the
highest number of visitors in KSA, Jeddah today is booming, and more
precisely its Food & Beverage segment.
Hospitality Management & Consultancy
Gedco Center - 3rd Floor - Hayek Roundabout
Sin El-Fil - Telefax 961 1 510016/7 P.O.Box 55-358 Beirut-Lebanon
E-mail: protocol@protocollb.com
1
Issue No 08
July - December 2014
Eye on Jeddah
By Chadi Chidiac from Protocol
Discretional Spending Pattern
In 2013, Jeddah scored a GDP per capita
of $ 31,273. In this city, not only revenues
are rapidly increasing, tastes are changing
too with a relatively lenient society
compared to Riyadh and other regions in the
Kingdom. According to a recent survey
conducted by PROTOCOL on spending
patterns of Jeddah’s residents, figures
showed a spending rate of 70 percent while
restaurants’ share stands at 5 percentage
points, meaning that in each dollar spent in
Jeddah there is five cents going into a
restaurant cash register yielding a decent
yearly turnover of $4.5 B.
Jeddah enjoys a young population with
more than 55 percent under the age of 35
yielding a more productive society with increase in education and exposure
which means more disposable and discretional earnings with more openness to
different concepts serving diversified types of food as globalization and
urbanization modernize lifestyles and alter spending habits.
Opportunities and Threats
In spite of Mayoralty's order to ban smoking in restaurants in 2010, there
are still opportunities and room for growth in the restaurant segment
especially that investors are considering this sector as a lucrative line of
investment as a mean to diversify their portfolio or simply because it is a
fascinating industry of prestige. As a result, the market has become a boiling
environment of uncertainty and financial doubts. However, the market is
facing challenges. The hike in the real estate market and the construction
lagging behind is putting pressure on the lease prices and available outlets
for exploitation. Investors are on the waiting list of prime locations with
potential.
The scarcity of skilled labor and manpower is putting even more pressure
on the food and beverage segment. Indeed, human resources remain an
issue for any operation, especially today that the market standards are
increasing. Diagnosis shows that the main suffering of the industry is linked
to the limited skilled labor which is due to causes like work visas, insufficient
training and high number of outlets.
Consensus
A potential solution to this problem might be by seriously enforcing the plan
of nationalization of the workforce in spite of some difficulties that might
interfere due course its implementation as well as the development of
service standards. The dynamism displayed by Saudi brands expansion
sheds a ray of optimism when observing the industrious and entrepreneurial
Saudis at work.
Market Trend in Figures
New concepts with additional choices and changing
tastes are all contributing to a boom in Saudi Arabia’s
F&B industry with restaurants, food outlets,
supermarkets and catering companies eagerly
expanding and diversifying to meet the high demand
among the Kingdom’s young and affluent population.
A recent survey made by PROTOCOL in 2013
revealed an exponential growth in the food and
beverage brands within the city offering a variety of
menus that caters to a diversified clientele. 181 brands
were categorized into 33 types of cuisines where
Italian and International concepts showed clear
presence with 24 and 23 respectively. Other
dominating concepts were Indians with 13 brands;
Lebanese came after with 11 and Middle Eastern with
10. It is worthy to mention that brands of Lebanese
origin are making their marks as well with operators like Semsom, C&G, Café Blanc,
Waterlemon, Chopsticks and Salmontini to name a few.
Al Baik, a heavyweight fast food brand of local origin expanding aggressively with more
than 35 branches, more than three times his apple to apple competition the KFC while
surpassing other global brands such as McDonalds and Pizza Hut. While American
style and product themed brand Al Tazaj and Kudu have already achieved ambitious
goals for their development, a lot has been done at the level of ethnic cuisine in the
last 5 years.
The focus in development began with an excessive focus on Asian and Lebanese
cuisines. Nowadays, other types of cuisines are being modernized in their offer taking
advantage of the multi ethnic aspect of the city, with brands like Ohio (Italian), Noodles
and China Gate (Chinese), Tako Hut (Mexican), Ashwak (Turkish), Sultani (Persian),
Royal Taj (Pakistani), Jakarta (Indonesian), Gold Sushi Club (Japanese), wing zone
and Ruby Tuesday (American), Casa In (Moroccan), Al Dawar Al Masri (Egyptian)
and a lot more proving that ethnic cuisine has a fertile ground.
Segmentation by Guest Check Average
The segmentation into five
price quotations was
derived from the average
check that we calculated
based on the comparable
pricing structure for every
outlet. We categorized all
average check below $20
as low-end market,
between $20 and $30 as
mid-low, between $30 and
$40 as mid-high, between
$40 and $50 as up-scale
while over $50 has been
categorized as high-end. The highest concentration of brands turned out to
be in the low and mid-low market.
Compiled by PROTOCOL
Compiled by PROTOCOL
Compiled by PROTOCOL
$20-$30
48%
$30-$40
14%
$40-$50
5%
Over $50
3%
under $20
30%
2. Kuwait Food Company (Americana) has said that a major shareholder, Al Khair National for Stocks and Real Estate
Company, was in preliminary talks with "various parties" to sell its stake in Americana. The company, which has a
market value of around $4.3 billion, did not identify the parties but stressed that no final agreement had been reached
and no binding commitments had been made. Al Khair is owned by the Al-Kharafi family, which controls Americana.
Reuters reported in April that the Kharafis, a billionaire merchant family with 66.8 per cent of Americana, had hired
investment bank Rothschild to explore a possible sale. Several factors may affect the completion of a deal for Al Khair,
Americana said, including a review by the franchisor of franchising contracts granted to Americana; regulatory and
legal approvals, including one by the US Department of Justice; and the determination of a fair price for the company.
Trade in Americana's shares was suspended in mid-September as news of the talks emerged. Americana said on
Tuesday that its shares would resume trading on Wednesday. Saudi Arabia's Savola Group said in August that it had
held preliminary talks with one of Americana's major shareholders about a potential deal. It later disclosed it had hired
JP Morgan to advise it. A joint offer from private equity firms KKR & Co and CVC Capital Partners and a bid from a
third interested party could be lodged by a deadline for second-round bids in mid-October, sources told Reuters peviously.
Herfy Food Services Co., which operates more than 200 burger joints across Saudi Arabia. Styled as a Saudi answer
to McDonald’s, Herfy touts its attention to “local tastes,” featuring menu items such as “chicken rings” -- similar to an
onion ring, only made of chicken -- and the Herfy Frappe. The publicly traded business is valued at about $1,300
Billion.
Burger joint Shake Shack filed for an initial public offering on Monday, a move that the company hopes will help it
grow its fleet of restaurants and take a bigger bite out of the booming fast-casual dining market. The chain, founded in
2004 by famed New York restaurateur Danny Meyer, has 63 outposts across the globe and raked in $82 million in
revenue in 2013. The company says in its filing with the Securities & Exchange Commission that it is seeking to raise
$100 million, though that figure that could change. Shake Shack plans to open 10 new company-operated stores each
year starting in 2015, and expects it could grow from 31 company-operated stores to 450 over the long-term, it said
in the filing. The company didn’t say how long it will take to reach that target.
The world’s highest restaurant situated 442 metres up in the sky on the 122nd floor of the world’s tallest building Burj
Khalifa in Dubai has opened its doors to the public. ‘At.mosphere’, located on the 122nd floor of 828-metre high Burj
Khalifa, however, dining at this height comes for a price. The restaurant accommodates 210 people over a lounge and
grills and offers an unparalleled view of the emirate’s skyline. Those wanting to book the luxury restaurant’s private
dining area will be expected to fork out at least USD 176.9 per guest, while afternoon tea comes in at nearly USD 100.
For drinks and snacks in the lounge area, guests must spend USD 54.45 per head. Diners keen to get a booking at the
world’s highest restaurant may need to save up after the Burj Khalifa eatery revealed patrons will be charged a minimum
of USD 122 a head. The restaurant, spread over an area of 1,030 square meters, is 92 meter taller than the world’s
second highest eatery — the revolving 360 Restaurant in Toronto’s CN Tower.
The celebrity chef, Wolfgang Puck, is one of the most camera-ready chefs in the business. After getting his start in the
U.S. restaurant scene in LA in the 1980s with Spago, the Austrian-born chef is credited with the proliferation of over
100 restaurants including 21 fine-dining concepts. His latest creations is CUT Dubai which is slated for spring.
The Hong Kong-based Langham Hospitality Group will be present in Dubai in 2015, it will not only open its first
establishment in the Middle East, but also the company’s first resort in what it’s calling a “global collection”. The 323-
room resort will provide all guests with outdoor terraces and inspiring seascapes of the Persian Gulf, along with a
13,000 square foot recreational facility including a pool, kids club and the Chuan Spa with 26 treatment rooms. The
Palm Court, modelled after The Langham in London where the tradition of afternoon tea was born, will serve as The
Langham’s culinary centrepiece and a pleasant reminder of the hotel’s rich heritage. Other dining options will include
a waterfront seafood restaurant and an Arabic-Italian fusion café.
Hard Rock International - owner of one of the world's most iconic and recognized brands - along with Abu Dhabi
Financial Group (ADFG), a renowned multi-billion dollar alternative investment firm headquartered in Abu Dhabi, and
Sheffield Holdings, a leading developer in the United Arab Emirates, announce Hard Rock Hotel Dubai Marina.
Projected to open in mid-2015 and to be managed by Hard Rock International, the hotel will be housed in the exciting
Marina 101 development set within the highly sought after Dubai Marina neighborhood. Boasting 101 floors, Marina
101 will be the second tallest building in the UAE upon completion. The tower will be divided into three different levels,
the first of which is the 281-room Hard Rock Hotel, the collection's first property to open in the Middle East, occupying
the first 33 floors. Hard Rock Hotel Dubai Marina will feature a soon to be unveiled club lounge and dining establishment
on the 101st floor complemented by the brand's signature world-class entertainment.
In Figures
PhotographiesbyRiadChlelala
LatestProjects
Lebanon
PROTOCOL was assigned to develop and execute an extension plan for a beach resort in Tyr. The project included the
development of bungalows clusters as well as a new docking pier for yachts and boats. The job also included a cross-
departmental restructuring and training.
UAE
PROTOCOL had a remarkable appearance in the Global Restaurant Investment Forum that was held in Dubai from the 16th till
the 18th of February 2015. GRIF is a business-oriented event for the restaurant and hospitality community. It is the meeting
place for investors, hoteliers, owners, lenders, F&B brands, restaurant concepts, franchisors, franchisees, suppliers and other
key industry professionals across the region to gain confidence in the market and share best practices with the industry.
Qatar
PROTOCOL was involved in a JV partnership with a highly recognized Qatari-based company and joined forces to work in
synergy in a number of hospitality-related projects in Doha.
Lebanon
PROTOCOL was assigned to diagnose the operations of a highly-recognized pastry shop in Tripoli – The assessment covered
all departments pinpointing operational gaps. PROTOCOL presented a full report with operational diagnosis and solutions.
UAE
PROTOCOL was assigned to represent a Lebanese –based franchise entity in Dubai. PROTOCOL also undertook a market study and a SWOT analysis report as well as a site
evaluation survey.
Lebanon
PROTOCOL undertook the development and exploitation of a new real estate project in Jounieh bay. The mixed-use project will be fully operational in 2016 with a GLA of around
3,000 square meters and an estimated budget of around $52 million.
Hospitality Management & Consultancy
Gedco Center - 3rd Floor - Hayek Roundabout
Sin El-Fil - Telefax 961 1 510016/7 P.O.Box 55-358 Beirut-Lebanon
E-mail: protocol@protocollb.com
2
3. 7 Minutes with Mr. Paul Z. Diab
Vice President - Operations Golden Tulip MENA
1. Q Tell us about your brand identity and your communication strategy for the Lebanese Market?
AWe currently have 5 hotels in Lebanon under the Golden Tulip brand, giving us a strong presence in the Lebanese market, a high
exposure and awareness for the brand, maintaining always the brand consistency. With our hotels locations in Lebanon that are
potential for business and leisure travelers, in Jiyeh, Aley, Jnah, Hamra and Sodeco, is helping us to develop a strong and
compelling strategic communication plan using all possible communication tools online and offline to convey every specific selling
points and compete for visibility in a crowded marketplace. Trying to combine packages and promotion between the beach,
mountain and city is helping to develop the communication strategy
2. Q What is your segment focus and which clientele are you targeting?
Every location has a different market and clientele, the mountain and beach properties target is mainly GCC, in addition to the Lebanese
and the weekend getaway trend that is now popular, while in Beirut we have the majority from Iraq and Syria in addition to GCC and few
Europeans, with our presence in the MENA we always promote Lebanon seeking for new markets.
3.Q What are the forecasted figures for the hotel’s occupancy ratio by region for the
year 2015 and your estimations about your market share?
A We are expecting an increase in occupancy in some cities due to the increasing numbers of
international and domestic, business and tourist visitors, such as Dubai occupancy to grow by 4.7% in
2015, Muscat is expected to benefit from a 6.6 % growth, and however KSA growth is expected to
be lower
4.Q What are your expectations and assumptions for operational KPI for ADR and
RevPAR?
A The good news is that the improving economic and travel backdrop partnered with future mega events has fed into improvement in trading
fundamentals in major cities, the RevPar and the pace growth varies from a city to another.
In increase by approximately 6% is expected in Dubai, Muscat, Jeddah, Riyadh, Abu Dhabi, while the
instability in the rest of the Middle East could provide a negative or positive impact on the growth in
these cities
5. Q Is it challenging to find qualified and skilled labor and in which positions?
Lebanon has one of the well-known hospitality management universities, so finding qualified and skilled labor have never been an issue, but
the current situation is not helping us to keep the skilled labors in Lebanon, as they always request to relocate to one of our hotels outside
Lebanon to build their career with a better salary, having more than 53 hotels in the MENA region is definitely helping us to develop them
as we are very confident that Lebanon will rise again and the Lebanese manpower will contribute in shaping the future of hospitality
6. Q Tell us about your development plan for the region on the short and mid-term and do you think That regional turmoil may affect aggressive
expansion decisions?
Our 6th hotel in Lebanon will open end of 2015 and is still on time despite all, while we are having 12 hotels to open in 2015 between
Kuwait, Qatar, KSA, Bahrain, UAE, Algeria and other hotels. The regional turmoil is not literally affecting the aggressive expansion of
Golden Tulip as we cover regions that are affected where we are witnessing delays in projects and in the openings while in other regions
the hotel industry is booming and plans are on time.
7. Q Tell us about your outlook and prospects for the regional investment environment in general and for the
hospitality industry in particular.
The investors are now more careful where they invest and in what for sure, in the hospitality industry we are witnessing a booming in some
countries while it is slow in other, in UAE for example and in preparation for 2020 the number of hotels will double, same goes for Qatar,
while the hospitality industry in Saudi Arabia is still soaring being one of the most fastest growing sectors.
8. Q Do you think that outsourcing and subcontracting is a good business model which promotes synergy and in which areas?
A Outsourcing is becoming a trend lately in the hospitality industry whether in restaurants or in hotels, mainly in stewarding and room attendants, as sometimes and due to the
rules and regulations of the country and to the nationalities and number of staff required in some departments based on the number of rooms or capacity, such services will be cost
effective to the hotel or the restaurant, however its disadvantages are the staff turnover.
STARGUESTINTERVIEW
Hospitality Management & Consultancy
Gedco Center - 3rd Floor - Hayek Roundabout
Sin El-Fil - Telefax 961 1 510016/7 P.O.Box 55-358 Beirut-Lebanon
E-mail: protocol@protocollb.com
3
A Every location has a different
market and clientele
“ “
“ “RevPar and the pace
growth varies from a
city to another.
A Lebanon has one of
the well-known hospitality
management universities,
so finding qualified and
skilled labor have never
been an issue
“ “
A The investors are
now more careful
where they invest and in what
for sure, in the hospitality
industry we are witnessing a
booming in some countries
while it is slow in other
“
“
Mr. Paul Z. Diab
“ “
“We are expecting an
increase in occupancy in
some cities due to the
increasing numbers of
international and domestic,
business and
tourist visitors
Dubai occupancy to grow
by 4.7% in 2015
KSA growth is expected to
be lower
“
4. 4
Restaurant costing and ricing seminar
Protocol will be holding a seminar around Restaurants Costing and Pricing Best Practices from the 16th until the 19th of March 2015 at
Intercontinental Phoenicia Hotel Beirut. It is a valuable program for all top-notch hospitality professionals looking to maximize Operational
understanding and business support for long term profitability.
For all information about our services, projects and all upcoming seminars visit protocollb.com
Hospitality Management & Consultancy
Gedco Center - 3rd Floor - Hayek Roundabout
Sin El-Fil - Telefax 961 1 510016/7 P.O.Box 55-358 Beirut-Lebanon
E-mail: protocol@protocollb.com
MEGAPROJECTS
Multi-millionmixeduseprojectintheZoukcoastlineofLebanon
Local real estate developer SAYFCO Holding has officially launch its first beach resort named Galatea. The project will be located
in the Zouk area. “We had been receiving hundreds of requests for a beach resort so we decided to launch the biggest such project
in Lebanon,” said Chahe Yerevanian, Chairman of SAYFCO. Delivery is expected in four to five years from now.
According to Yerevanian, Zouk is the most demanded area north of Beirut. It is close to Beirut and is not affected by the massive
traffic going towards areas like Tabarja. “There are no modern resorts in Zouk. All existing ones are over 30 years old.” The project
will comprise chalets sized between 50, 75, and 100 square meters, starting at $300,000. It will also include a five-star boutique
hotel and Spa with 75 to 100 rooms. “We will appoint a management chain to handle the hotel, but we have not made a decision
yet.” The project will feature Olympic pools, a water park, a marina and yacht club, a private sandy beach, and children’s
playgrounds, along with restaurants and shops. The total space of the land reaches 50,000 square meters. SAYFCO also has a
license to reclaim another 50,000 square meters from the sea, bringing the project’s total space to 100,000 square meters. The built-up area will total 188,000 square meters, including
underground parking lots. Yerevanian said that the market value of the project, or its total projected sales, is around $800 million. He said that despite the crisis, he has always believed
in the local market, and continues to be willing to invest in it. SAYFCO delivered more than 3,500 residential units in the past three years.
As noted, one does not control labor cost by keeping salaries and wages low. In fact, operations paying less than the going wage rate in their locale
will find it difficult to hire and retain the more productive employees. Think about it. If you felt you were a very good bartender, cook or manager,
would you quit your current job and go work for someone who paid you less than you were making? I don’t think many of us would work for less. It
is not unusual to find low productivity and inefficiency in operations where low wages are paid relative to other operations of its type in the immediate
area. This is because a low wage scale will primarily attract marginal employees whose efficiency, work ethic and temperament disqualifies them from
getting identical positions in companies paying above-average wages to above-average applicants. The better employees will go where they will be
better compensated for their skills and abilities.
A regional Fast-casual diner operator seeking to sell franchises asked PROTOCOL to help him develop a franchisee manual. When we went over his
job categories and wage rates we discovered that the highest-paid hourly employees were making only $45.00 to $50.00 per month more than the
starting minimum rate. I asked about this and was told that employees quit when they were not given raises, and that did not concern the manager
since he could just hire someone else at a lower rate. He believed that paying lower wages was a way to control payroll. About one-third of all
employees who leave a job voluntarily, leave for better pay. You may have heard that money cannot be a motivator for increasing productivity. Well, it is probably true that just increasing the wages of an
employee will not necessarily mean they will be more productive, but when money is used as a reward for outstanding performance, it can be an effective motivator. There are a number of scheduling
methodologies you can use that will reduce your labor costs just by adjusting when you have employees arrive and depart from work. Efficient scheduling must reflect the variations in business volume that
occur during the day and even meal period. Your goal is to accomplish the necessary workload with a minimum number of labor hours while maintaining your level of service. Productive employees should
be rewarded with pay increases and earn more than average employees. Treat your valuable employees like you do your most valuable customers. Realize that the labor cost per cover and the number of
covers per labor hour can be improved only with productive employees. If productive employees are treated no differently from marginally productive ones, there is no benefit to the employee to do more
than average for he or she will get the same enumeration either way.
To Measure Productivity, You Need Several Benchmarks
No single measure can be used to evaluate labor productivity; management must employ multiple measures collectively. Management must have a better index of labor productivity and no single measure
can efficiently accomplish that. Therefore, additional measures are needed to properly analyze labor costs. The additional information needed is readily available as it is compiled on a daily or weekly basis.
These measures are:
Covers per labor hour
Labor cost per cover
Labor cost per labor hour
Where do you start? Each time payroll is processed; total labor hours by job category are tallied. Management will compare actual hours worked to those originally scheduled and look for variances. If
hours worked are greater than scheduled hours, they will investigate to determine the job category where the variance occurred.
Employee schedules are determined not by revenue but by customer counts or “covers.” The “covers per labor hour” is perhaps the most “inflation-proof” indicator of labor productivity compiled by a
foodservice operation because it is not distorted by the way sales are affected by price increases and discounts. Although some drops in customer counts occur in the long run when prices are increased,
covers per labor hour remains the most effective indicator of employee productivity. The number of covers per labor hour is calculated for each job category as well as for the entire payroll by dividing total
labor hours by the customer count. The “labor cost per labor hour” is another productivity index. It is calculated by dividing total payroll by total labor hours. When calculated by respective employee job
categories, one can readily see the wage differentials between jobs. This information can assist management in establishing wage ranges for each job category. The third index of productivity is the “labor
cost per cover.” This tells us how much labor is used to serve each customer that comes into the operation. The total payroll is divided by the number of customers. Analysis of this index by job category will
show a very wide spread between categories like hostess/cashiers, waiters and cooks. The averages in each job category are controlled by the number of employees, the average hourly wages, and the
number of hours worked. (Check Table 1.1).
ManagementSolutions
BoostProductivitytoControlLaborCosts
Control Labor Costs through Better Scheduling, Not Lower Wages
Table 1.1